Austin Deasy
Ceist:47 Mr. Deasy asked the Minister for Enterprise and Employment the plans, if any, he has to make it attractive for employers to take on more employees.
Written Answers. - Recruitment Incentive.
A number of initiatives have been established within my Department for the purposes of developing Irish economic activity and, consequently, increasing the attractiveness for employers to take on more employees. Such initiatives have been developed in the spirit of the Culliton report's findings, i.e. that of improving industrial performance, as a means to creating additional job opportunities. Some of these initiatives have been relatively recent developments. The following paragraphs indicate measures which are in place and which, amongst other objectives, are intended to have the effect of increasing the numbers of job opportunities in Irish business.
PRSI
In his 1994 Budget Statement the Minister for Finance announced a re-structured system of PRSI which included reductions of employers' contribution rates for lower paid employees. It is anticipated that this measure will assist in both the maintenance of existing jobs and the creation of new jobs in labour-intensive industries.
Task Force on Small Business
The Task Force on Small Business was a Government initiative to see what measures were needed to develop the full potential for small businesses to create additional job opportunities. This task force reported on its findings in March 1994, and this report included many recommendations which would have the effect of increasing the job creation incentive for small Irish businesses.
Following the publication of this report and its recommendations, I am at the moment establishing a small business/service unit within my Department which will be responsible for developing the ideas which have been identified in this report, and promoting job creation in the small business/service sectors generally.
Finance for Business/Industry
One of the principal constraints on the development of Irish indigenous industry and consequently employment has been identified as the difficulty of obtaining adequate development funding. In order to provide greater access to development funding in future a number of developments have taken place:
A. £100 Million Preferential Loan Scheme
Earlier this year the Government established a loan scheme which provides low interest rate long term loans to small industries. I understand that applications for such facilities already substantially exceed the £100 million arranged.
B. County Enterprise Boards
The County Enterprise Development Board scheme will provide start up/development funding to many Irish businesses and consequently is expected to increase the number of job opportunities in the business sector for the future.
C. Venture Capital
Within the Operational Programme for Industry provision has been made for an allocation of EC Structural Fund resources for the promotion of venture/seed capital initiatives over the period of the operational programme. Such resources will be allocated to qualifying seed/venture capital funds and will increase the flow of seed/venture capital funding to projects which have the potential for further development and consequently additional job creation in the future.
The above initiatives are perhaps the principal initiatives which are now in place and which increase the incentives for employers to create more job opportunities in Ireland in the future.
However, I would point out that the creation of a positive business environment that is conducive to the expansion of job opportunities in the Irish economy is a constant priority, both for myself as Minister for Enterprise and Employment, and officials in my Department.